If Cara's Piano sales increased from $46,000 to $68,000 and its cost of goods sold decreased from $29,000 to $16,000, then vertical analysis based on sales would show the following for cost of goods sold (rounded to the nearest percent):
A) 63% and 24%.
B) 43% and 35%.
C) 55% and 68%.
D) 68% and 43%.

Question

Quizplus · Accepted Answer

Vertical analysis for cost of goods sold as a percentage of sales for the initial and final figures are 63% ($29,000/$46,000) and 24% ($16,000/$68,000), respectively.

If Cara's Piano Sales Increased from $46,000 to $68,000 and Its